Answers:Questions:
1) The initial investment was not a rollover from a previous 401k or any such account. It was a cash contribution from my bank account. Am I correct in assuming that it was misclassified?
2) I see the IRA deduction for $6,500 of the @13k on my 2015 tax return, what about the other $6,500 from that initial contribution? Can I file a form 8606 for that amount? Or no, because it was classed as part of a "rollover contribution"?
3) Is any of this even worth it for the 13k I'll pay in tax on money that was taxed already when I put it in???
1) It was either misclassified or the description that you have given is inconsistent with what is on income tax forms. What is reported on Form 5498 and your income tax return for 2015 is consistent with having distributions of $12,911 from pensions or annuities (rounded to the digits shown) during 2015 and having rolled over $12,901.45 of the distributions.
2) According to your description, the other $6,500 was an IRA contribution for 2014. It should have been reported on your 2014 income tax return, either as a deductible contribution on Form 1040 or as a non-deductible contribution on Form 8606.
3) It is not clear whether your IRA contains money that has been taxed already. Was the contribution for 2014 reported as a deductible contribution?
Statistics: Posted by FactualFran — Thu Feb 01, 2024 10:44 am — Replies 10 — Views 631